The Government has just issued Decree No. 135/2024/ND-CP dated October 22, 2024, stipulating mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power. The Decree takes effect from today, October 22, 2024.

The first notable point is that the Decree has an expanded scope of application to all subjects such as houses, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production establishments, and business establishments invested and built nationwide.

Direct electricity trading between organizations and individuals is carried out according to the Decree on the mechanism for direct electricity trading between renewable energy generators and large electricity users.

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Many policies encourage the development of self-produced and self-consumed rooftop solar power. Photo: Nam Khanh

Decree 135 stipulates that self-produced and self-consumed rooftop solar power connected to the national power system of households and individual houses with a capacity of less than 100kW, if not fully used, can be sold to the national power system but not exceeding 20% ​​of the actual installed capacity.

In the above case, Vietnam Electricity Group will pay organizations and individuals for the excess electricity output to the national power system, but not exceeding 20% ​​of the actual installed capacity.

"The price for buying and selling surplus electricity to the national power system is equal to the average market electricity price in the previous year announced by the power system and electricity market operator to ensure appropriate incentives in each development period of the national power system," the Decree clearly states the price mechanism for buying surplus rooftop solar power.

Self-produced, self-consumed rooftop solar power installed on the roof of a construction site that is an office or a construction site identified as a public asset does not purchase or sell surplus electricity.

Households and individual houses that develop rooftop solar power for self-production and self-consumption are exempted from or do not have to adjust their business licenses.

In addition, Decree 135 also encourages organizations and individuals to decide to install a battery storage system (BESS) to ensure safe and stable operation of the power system.

Excess rooftop solar power: Only EVN is allowed to buy Regarding the purchase and sale of excess electricity from self-produced and self-consumed rooftop solar power, the new draft of the Ministry of Industry and Trade stipulates that Vietnam Electricity Group (EVN) is the sole buyer.